Which of the Following Is Not True Regarding the Efficient

question 5

Multiple Choice

Which of the following is not true regarding the efficient frontier considered by MNCs?

• A) There is exactly one point on the efficient frontier that is optimal for every MNC, regardless of its degree of risk aversion.
• B) The efficient frontier for international projects will probably lie to the left of the efficient frontier for domestic projects.
• C) Each point on the efficient frontier represents a portfolio of projects as opposed to an individual project.
• D) All of the above are true.
• E) A and C are false.

---

Definitions:

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, expressed with a certain level of confidence.

Population Standard Deviation

A measure of the dispersion or spread of all members of a population from its mean value.

Interval Estimate

A range of values used to estimate a population parameter, typically expressed through confidence intervals.

Population Mean

The average value of a population's characteristic, calculated by summing all values and dividing by the population size.